DuPont Decomposition
Why does JKCEMENT earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
14.1% = 7.2% × 0.74 × 2.63
Latest: FY2026
Profitability
Net Margin
7.2%
8.8% →7.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.74x
0.69x →0.74x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.63x
2.64x →2.63x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 1.8 pp over 5 years. Driven by net margin declining (8.8% → 7.2%).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 8.8% | 0.69 | 2.64 | 15.9% |
| FY2023 | ₹0Cr | ₹0Cr | 4.5% | 0.71 | 2.84 | 9.0% |
| FY2024 | ₹0Cr | ₹0Cr | 7.1% | 0.76 | 2.76 | 14.7% |
| FY2025 | ₹0Cr | ₹0Cr | 7.3% | 0.71 | 2.74 | 14.1% |
| FY2026 | ₹0Cr | ₹0Cr | 7.2% | 0.74 | 2.63 | 14.1% |
How to read DuPont
- • Rising ROE from margin = pricing power, operational improvement (good)
- • Rising ROE from turnover = better asset utilization (good)
- • Rising ROE from leverage = more debt, amplified risk (caution)
- • Falling ROE across all three = structural deterioration (red flag)
DuPont decomposition from audited annual financials. Factual analysis, not investment advice.